WESTERN MIDSTREAM ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2023 RESULTS
- None.
- Negative free cash flow after distributions for both the fourth quarter and full year of 2023
Insights
The reported financial results from Western Midstream Partners, LP demonstrate a robust performance, surpassing the revised full-year 2023 Adjusted EBITDA projections. The key figures, such as the $998.5 million net income and $2.069 billion Adjusted EBITDA, are critical indicators of the company's profitability and operational efficiency. The company's ability to exceed its own Adjusted EBITDA guidance suggests strong operational control and possibly better-than-expected revenue streams or cost management.
From an investment perspective, the consistent Base Distribution of $0.575 per unit is an attractive aspect for income-focused investors, signaling stability in the company's cash distribution policies. The capital return framework, which included distributions and unit repurchases, reflects a shareholder-friendly approach, potentially increasing investor confidence and affecting the stock's appeal in the market.
Furthermore, the strategic acquisition of Meritage Midstream Services II, LLC and the divestiture of non-core assets, indicate an active portfolio management strategy. These moves could optimize the company's asset base and improve its competitive positioning, which is essential for long-term growth and sustainability in the midstream sector.
The midstream energy sector, characterized by the transportation, storage and processing of oil and gas, is highly influenced by commodity prices and production volumes. Western Midstream's record annual natural-gas throughput and the increases in crude-oil and NGLs throughput reflect positively on the company's market share and operational capabilities. The 5-percent year-over-year increase in natural-gas throughput and 7-percent increase in crude-oil and NGLs throughput are significant, given the industry's competitive and volatile nature.
The company's focus on the Delaware Basin, with an 11-percent increase in natural gas throughput, is noteworthy as it suggests a strategic emphasis on a region with potentially higher margins or growth prospects. The mention of commercial agreements with minimum-volume commitments could indicate secured future revenues, which is a positive sign for market analysts assessing the company's future performance.
Lastly, the operational efficiencies and throughput growth that have been highlighted may result in cost synergies, contributing to a stronger competitive edge. The company's positioning as one of the top natural-gas processors in the Delaware Basin could translate into a sustainable advantage within the midstream industry, potentially affecting its market valuation and investor interest.
Western Midstream's performance in 2023, particularly the throughput growth across natural gas, crude oil and NGLs, is indicative of the company's strong operational execution within the midstream energy sector. The 21-percent increase in produced-water throughput is particularly impressive, as it highlights the company's capacity to handle the byproducts of hydrocarbon extraction, which is a growing concern in the industry.
The sanctioning of new processing plants, such as Mentone III and North Loving and the expansion into the Powder River Basin, suggest a forward-looking growth strategy that is focused on increasing processing capacity to meet future demand. This expansion is underpinned by long-term commercial agreements, which provide a degree of revenue predictability crucial for the midstream sector.
Moreover, the full investment-grade ratings obtained and the successful bond offerings to fund acquisitions and enhance liquidity are reflective of a solid financial strategy that supports growth initiatives while maintaining a strong balance sheet. This financial prudence is essential in an industry where large capital expenditures are the norm and it may influence the company's creditworthiness and attractiveness to debt investors.
- Reported fourth-quarter 2023 Net income attributable to limited partners of
$281.6 million $570.7 million - Reported full-year 2023 Net income attributable to limited partners of
$998.5 million $2.06 9 billion$1.95 0 billion$2.05 0 billion - Reported fourth-quarter 2023 Cash flows provided by operating activities of
$473.3 million $282.0 million - Reported full-year 2023 Cash flows provided by operating activities of
$1.66 1 billion$964.2 million $900.0 million $1.00 0 billion - Announced a fourth-quarter Base Distribution of
$0.57 5$2.30
Net income (loss) attributable to limited partners for full-year 2023 totaled
FOURTH-QUARTER AND FULL-YEAR 2023 HIGHLIGHTS
- Achieved record annual natural-gas throughput of 4.4 Bcf/d, representing a 5-percent year-over-year increase(2), in-line with our revised 2023 expectations of mid-single-digits growth.
- Gathered record annual crude-oil and NGLs throughput of 652 MBbls/d, representing a 7-percent year-over-year increase(3), exceeding our 2023 expectations of low-single-digits growth.
- Gathered record annual produced-water throughput of 1,009 MBbls/d, representing a 21-percent year-over-year increase, exceeding our revised 2023 expectations of upper-teens growth.
- Achieved year-over-year throughput growth across all products in the
Delaware Basin of 11-percent, 8-percent, and 21-percent, for natural gas, crude oil and NGLs, and produced water, respectively. - Sanctioned the 250 MMcf/d North Loving processing plant in May 2023, and materially progressed construction of the 300 MMcf/d Mentone III processing train, both of which are underpinned by commercial agreements containing either acreage dedications or significant minimum-volume commitments.
- Announced and closed the acquisition of Meritage Midstream Services II, LLC ("Meritage"), expanding WES's position to the largest gathering and processing footprint in the Powder River Basin.
- Executed on our capital return framework by returning
$978.4 million $134.6 million - Obtained full investment-grade ratings in May 2023 and raised
$1.35 0 billion
On February 13, 2024, WES paid its fourth-quarter 2023 per-unit Base Distribution of
Fourth-quarter 2023 natural-gas throughput(5) averaged 4.9 Bcf/d, representing a 9-percent sequential-quarter increase(2). Fourth-quarter 2023 throughput for crude-oil and NGLs assets(5) averaged 702 MBbls/d, representing a 5-percent sequential-quarter increase(3). Fourth-quarter 2023 throughput for produced-water assets(5) averaged 1,054 MBbls/d, representing a 2-percent sequential-quarter decrease.
Full-year 2023 natural-gas throughput(5) averaged 4.4 Bcf/d, representing a 5-percent year-over-year increase(2). Full-year 2023 throughput for crude-oil and NGLs assets(5) averaged 652 MBbls/d, representing a 7-percent year-over-year increase(3). Full-year 2023 throughput for produced-water assets(5) averaged 1,009 MBbls/d, representing a 21-percent year-over-year increase.
"2023 was a successful, pivotal year for WES as we achieved operated throughput growth of approximately 7-percent, 5-percent, and 21-percent for natural gas, crude-oil and NGLs, and produced water, respectively. We also continued to diversify our asset and customer base through accretive M&A in the Powder River Basin, all while returning
"Focusing on the
"Additionally, concurrent with this release, we are announcing that we have entered into a series of agreements to sell WES's equity interests in multiple non-core assets for aggregate proceeds of
CONFERENCE CALL TOMORROW AT 1:00 P.M. CT
WES will host a conference call on Thursday, February 22, 2024, at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) to discuss its fourth-quarter and full-year 2023 results. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A small number of phone lines are available for analysts; individuals should dial 888-390-0546 (Domestic) or 617-892-4906 (International) ten to fifteen minutes before the scheduled conference call time. A replay of the live audio webcast can be accessed on the Partnership's website at www.westernmidstream.com for one year after the call.
For additional details on WES's financial and operational performance, please refer to the earnings slides and updated investor presentation available at www.westernmidstream.com.
FILING OF ANNUAL REPORT ON FORM 10-K
Today WES announced the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, with the Securities and Exchange Commission. A copy of the report is available for viewing and downloading on the Western Midstream website at www.westernmidstream.com. Unitholders may request hard copies of the report, which contains WES's audited financial statements, free of charge, by emailing investors@westernmidstream.com, or by submitting a written request to Western Midstream Partners, LP at the following address: 9950 Woodloch Forest Drive, Suite 2800,
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in
For more information about WES, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; the successful closing of the divestitures noted above; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
_____________________________________________________________ | ||||
(1) | Please see the definitions of the Partnership's non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures. | |||
(2) | For the quarter- and year-ended December 31, 2023, includes an average of 331 MMcf/d and 83 MMcf/d, respectively, of throughput associated with the Meritage acquisition in the fourth quarter of 2023. | |||
(3) | For the quarter- and year-ended December 31, 2022, excludes an average of 27 MBbls/d and 65 MBbls/d, respectively, of throughput associated with the sale of Cactus II in the fourth quarter of 2022. For the quarter and year-ended December 31, 2023, includes an average of 20 MBbls/d and 5 MBbls/d, respectively, of throughput associated with the Meritage acquisition in the fourth quarter of 2023. | |||
(4) | Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the | |||
(5) | Represents total throughput attributable to WES, which excludes (i) the | |||
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
Investors@westernmidstream.com
866.512.3523
Rhianna Disch
Manager, Investor Relations
Investors@westernmidstream.com
866.512.3523
Western Midstream Partners, LP | ||||||||
Three Months Ended | Year Ended | |||||||
thousands except per-unit amounts | 2023 | 2022 | 2023 | 2022 | ||||
Revenues and other | ||||||||
Service revenues – fee based | $ | 763,837 | $ | 647,948 | $ | 2,768,757 | $ | 2,602,053 |
Service revenues – product based | 49,515 | 46,971 | 191,727 | 249,692 | ||||
Product sales | 44,688 | 84,268 | 145,024 | 399,023 | ||||
Other | 168 | 250 | 968 | 953 | ||||
Total revenues and other | 858,208 | 779,437 | 3,106,476 | 3,251,721 | ||||
Equity income, net – related parties | 36,120 | 44,095 | 152,959 | 183,483 | ||||
Operating expenses | ||||||||
Cost of product | 40,803 | 92,663 | 164,598 | 420,900 | ||||
Operation and maintenance | 200,426 | 166,923 | 762,530 | 654,566 | ||||
General and administrative | 73,060 | 49,382 | 232,632 | 194,017 | ||||
Property and other taxes | 16,497 | 18,065 | 56,458 | 78,559 | ||||
Depreciation and amortization | 165,187 | 151,910 | 600,668 | 582,365 | ||||
Long-lived asset and other impairments | 4 | 20,491 | 52,884 | 20,585 | ||||
Total operating expenses | 495,977 | 499,434 | 1,869,770 | 1,950,992 | ||||
Gain (loss) on divestiture and other, net | (6,434) | 104,560 | (10,102) | 103,676 | ||||
Operating income (loss) | 391,917 | 428,658 | 1,379,563 | 1,587,888 | ||||
Interest expense | (97,622) | (84,606) | (348,228) | (333,939) | ||||
Gain (loss) on early extinguishment of debt | — | — | 15,378 | 91 | ||||
Other income (expense), net | 2,862 | 1,486 | 5,679 | 1,603 | ||||
Income (loss) before income taxes | 297,157 | 345,538 | 1,052,392 | 1,255,643 | ||||
Income tax expense (benefit) | 1,405 | 504 | 4,385 | 4,187 | ||||
Net income (loss) | 295,752 | 345,034 | 1,048,007 | 1,251,456 | ||||
Net income (loss) attributable to noncontrolling interests | 7,398 | 8,710 | 25,791 | 34,353 | ||||
Net income (loss) attributable to Western Midstream Partners, | $ | 288,354 | $ | 336,324 | $ | 1,022,216 | $ | 1,217,103 |
Limited partners' interest in net income (loss): | ||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 288,354 | $ | 336,324 | $ | 1,022,216 | $ | 1,217,103 |
General partner interest in net (income) loss | (6,724) | (7,747) | (23,684) | (27,541) | ||||
Limited partners' interest in net income (loss) | $ | 281,630 | $ | 328,577 | $ | 998,532 | $ | 1,189,562 |
Net income (loss) per common unit – basic | $ | 0.74 | $ | 0.85 | $ | 2.61 | $ | 3.01 |
Net income (loss) per common unit – diluted | $ | 0.74 | $ | 0.85 | $ | 2.60 | $ | 3.00 |
Weighted-average common units outstanding – basic | 379,517 | 384,885 | 383,028 | 394,951 | ||||
Weighted-average common units outstanding – diluted | 381,140 | 386,482 | 384,408 | 396,236 | ||||
Western Midstream Partners, LP | ||||
December 31, | ||||
thousands except number of units | 2023 | 2022 | ||
Total current assets | $ | 992,410 | $ | 900,425 |
Net property, plant, and equipment | 9,655,016 | 8,541,600 | ||
Other assets | 1,824,181 | 1,829,603 | ||
Total assets | $ | 12,471,607 | $ | 11,271,628 |
Total current liabilities | $ | 1,304,056 | $ | 903,857 |
Long-term debt | 7,283,556 | 6,569,582 | ||
Asset retirement obligations | 359,185 | 290,021 | ||
Other liabilities | 495,680 | 400,053 | ||
Total liabilities | 9,442,477 | 8,163,513 | ||
Equity and partners' capital | ||||
Common units (379,519,983 and 384,070,984 units issued and outstanding at December 31, | 2,894,231 | 2,969,604 | ||
General partner units (9,060,641 units issued and outstanding at December 31, 2023 and | 3,193 | 2,105 | ||
Noncontrolling interests | 131,706 | 136,406 | ||
Total liabilities, equity, and partners' capital | $ | 12,471,607 | $ | 11,271,628 |
Western Midstream Partners, LP | ||||
Year Ended | ||||
thousands | 2023 | 2022 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ | 1,048,007 | $ | 1,251,456 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities and | ||||
Depreciation and amortization | 600,668 | 582,365 | ||
Long-lived asset and other impairments | 52,884 | 20,585 | ||
(Gain) loss on divestiture and other, net | 10,102 | (103,676) | ||
(Gain) loss on early extinguishment of debt | (15,378) | (91) | ||
Change in other items, net | (34,949) | (49,213) | ||
Net cash provided by operating activities | $ | 1,661,334 | $ | 1,701,426 |
Cash flows from investing activities | ||||
Capital expenditures | $ | (735,080) | $ | (487,228) |
Acquisitions from third parties | (877,746) | (40,127) | ||
Contributions to equity investments - related parties | (1,153) | (9,632) | ||
Distributions from equity investments in excess of cumulative earnings – related parties | 39,104 | 63,897 | ||
Proceeds from the sale of assets to related parties | — | 200 | ||
Proceeds from the sale of assets to third parties | (87) | 264,121 | ||
(Increase) decrease in materials and supplies inventory and other | (32,329) | (9,468) | ||
Net cash used in investing activities | $ | (1,607,291) | $ | (218,237) |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | $ | 2,448,733 | $ | 1,389,010 |
Repayments of debt | (1,967,928) | (1,518,548) | ||
Commercial paper borrowings (repayments), net | 609,916 | — | ||
Increase (decrease) in outstanding checks | 3,516 | 2,206 | ||
Distributions to Partnership unitholders | (978,430) | (735,755) | ||
Distributions to Chipeta noncontrolling interest owner | (7,641) | (10,736) | ||
Distributions to noncontrolling interest owner of WES Operating | (22,850) | (24,898) | ||
Net contributions from (distributions to) related parties | — | 1,423 | ||
Unit repurchases | (134,602) | (487,590) | ||
Other | (18,626) | (13,644) | ||
Net cash provided by (used in) financing activities | $ | (67,912) | $ | (1,398,532) |
Net increase (decrease) in cash and cash equivalents | $ | (13,869) | $ | 84,657 |
Cash and cash equivalents at beginning of period | 286,656 | 201,999 | ||
Cash and cash equivalents at end of period | $ | 272,787 | $ | 286,656 |
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
WES defines Adjusted gross margin attributable to Western Midstream Partners, LP ("Adjusted gross margin") as total revenues and other (less reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interest owners' proportionate share of revenues and cost of product.
WES defines Adjusted EBITDA as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax expense, (v) depreciation and amortization, (vi) impairments, and (vii) other expense (including lower of cost or market inventory adjustments recorded in cost of product), less (i) gain (loss) on divestiture and other, net, (ii) gain (loss) on early extinguishment of debt, (iii) income from equity investments, (iv) interest income, (v) income tax benefit, (vi) other income, and (vii) the noncontrolling interest owners' proportionate share of revenues and expenses.
WES defines Free cash flow as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings. Management considers Free cash flow an appropriate metric for assessing capital discipline, cost efficiency, and balance-sheet strength. Although Free cash flow is the metric used to assess WES's ability to make distributions to unitholders, this measure should not be viewed as indicative of the actual amount of cash that is available for distributions or planned for distributions for a given period. Instead, Free cash flow should be considered indicative of the amount of cash that is available for distributions, debt repayments, and other general partnership purposes.
Below are reconciliations of (i) gross margin (GAAP) to Adjusted gross margin (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA (non-GAAP), and (iii) net cash provided by operating activities (GAAP) to Free cash flow (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that Adjusted gross margin, Adjusted EBITDA, and Free cash flow are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing WES's ability to incur and service debt, fund capital expenditures, and make distributions. Adjusted gross margin, Adjusted EBITDA, and Free cash flow as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Adjusted gross margin, Adjusted EBITDA, and Free cash flow should be considered in conjunction with net income (loss) attributable to Western Midstream Partners, LP and other applicable performance measures, such as gross margin or cash flows provided by operating activities.
Western Midstream Partners, LP | ||||||||
Adjusted Gross Margin | ||||||||
Three Months Ended | Year Ended | |||||||
thousands | December 31, | September 30, | December 31, | December 31, | ||||
Reconciliation of Gross margin to Adjusted gross | ||||||||
Total revenues and other | $ 858,208 | $ 776,013 | $ 3,106,476 | $ 3,251,721 | ||||
Less: | ||||||||
Cost of product | 40,803 | 27,590 | 164,598 | 420,900 | ||||
Depreciation and amortization | 165,187 | 147,363 | 600,668 | 582,365 | ||||
Gross margin | 652,218 | 601,060 | 2,341,210 | 2,248,456 | ||||
Add: | ||||||||
Distributions from equity investments | 46,661 | 41,562 | 194,273 | 250,050 | ||||
Depreciation and amortization | 165,187 | 147,363 | 600,668 | 582,365 | ||||
Less: | ||||||||
Reimbursed electricity-related charges recorded as | 25,273 | 29,981 | 102,109 | 81,764 | ||||
Adjusted gross margin attributable to noncontrolling | 19,412 | 18,095 | 70,195 | 73,632 | ||||
Adjusted gross margin | $ 819,381 | $ 741,909 | $ 2,963,847 | $ 2,925,475 | ||||
Gross margin | ||||||||
Gross margin for natural-gas assets (2) | $ 484,688 | $ 450,130 | $ 1,738,125 | $ 1,676,732 | ||||
Gross margin for crude-oil and NGLs assets (2) | 103,228 | 87,911 | 368,444 | 346,406 | ||||
Gross margin for produced-water assets (2) | 70,509 | 70,353 | 259,541 | 245,274 | ||||
Adjusted gross margin | ||||||||
Adjusted gross margin for natural-gas assets | $ 579,278 | $ 518,765 | $ 2,067,528 | $ 2,031,600 | ||||
Adjusted gross margin for crude-oil and NGLs assets | 157,048 | 139,430 | 589,091 | 607,769 | ||||
Adjusted gross margin for produced-water assets | 83,055 | 83,714 | 307,228 | 286,106 | ||||
(1) | For all periods presented, includes (i) the | |||
(2) | Excludes corporate-level depreciation and amortization. |
Western Midstream Partners, LP | ||||||||
Adjusted EBITDA | ||||||||
Three Months Ended | Year Ended | |||||||
thousands | December 31, | September 30, | December 31, | December 31, | ||||
Reconciliation of Net income (loss) to Adjusted | ||||||||
Net income (loss) | $ 295,752 | $ 284,398 | $ 1,048,007 | $ 1,251,456 | ||||
Add: | ||||||||
Distributions from equity investments | 46,661 | 41,562 | 194,273 | 250,050 | ||||
Non-cash equity-based compensation expense | 9,970 | 7,171 | 32,005 | 27,783 | ||||
Interest expense | 97,622 | 82,754 | 348,228 | 333,939 | ||||
Income tax expense | 1,405 | 905 | 4,385 | 4,187 | ||||
Depreciation and amortization | 165,187 | 147,363 | 600,668 | 582,365 | ||||
Impairments | 4 | 245 | 52,884 | 20,585 | ||||
Other expense | 71 | 1,269 | 1,739 | 555 | ||||
Less: | ||||||||
Gain (loss) on divestiture and other, net | (6,434) | (1,480) | (10,102) | 103,676 | ||||
Gain (loss) on early extinguishment of debt | — | 8,565 | 15,378 | 91 | ||||
Equity income, net – related parties | 36,120 | 35,494 | 152,959 | 183,483 | ||||
Other income | 2,862 | 27 | 6,976 | 1,648 | ||||
Adjusted EBITDA attributable to noncontrolling | 13,459 | 12,134 | 48,345 | 54,049 | ||||
Adjusted EBITDA | $ 570,665 | $ 510,927 | $ 2,068,633 | $ 2,127,973 | ||||
Reconciliation of Net cash provided by operating | ||||||||
Net cash provided by operating activities | $ 473,300 | $ 394,787 | $ 1,661,334 | $ 1,701,426 | ||||
Interest (income) expense, net | 97,622 | 82,754 | 348,228 | 333,939 | ||||
Accretion and amortization of long-term obligations, net | (2,174) | (1,882) | (8,151) | (7,142) | ||||
Current income tax expense (benefit) | 1,315 | 806 | 3,341 | 2,188 | ||||
Other (income) expense, net | (2,862) | 1,270 | (5,679) | (1,603) | ||||
Distributions from equity investments in excess of | 7,389 | 8,536 | 39,104 | 63,897 | ||||
Changes in assets and liabilities: | ||||||||
Accounts receivable, net | 17,773 | 60,614 | 78,346 | 116,296 | ||||
Accounts and imbalance payables and accrued | (19,021) | (12,535) | 68,019 | 7,812 | ||||
Other items, net | 10,782 | (11,289) | (67,564) | (34,791) | ||||
Adjusted EBITDA attributable to noncontrolling | (13,459) | (12,134) | (48,345) | (54,049) | ||||
Adjusted EBITDA | $ 570,665 | $ 510,927 | $ 2,068,633 | $ 2,127,973 | ||||
Cash flow information | ||||||||
Net cash provided by operating activities | $ 473,300 | $ 394,787 | $ 1,661,334 | $ 1,701,426 | ||||
Net cash used in investing activities | (1,068,707) | (207,916) | (1,607,291) | (218,237) | ||||
Net cash provided by (used in) financing activities | 378,700 | 88,670 | (67,912) | (1,398,532) | ||||
(1) | For all periods presented, includes (i) the |
Western Midstream Partners, LP | ||||||||
Free Cash Flow | ||||||||
Three Months Ended | Year Ended | |||||||
thousands | December 31, | September 30, | December 31, | December 31, | ||||
Reconciliation of Net cash provided by operating | ||||||||
Net cash provided by operating activities | $ 473,300 | $ 394,787 | $ 1,661,334 | $ 1,701,426 | ||||
Less: | ||||||||
Capital expenditures | 198,653 | 201,857 | 735,080 | 487,228 | ||||
Contributions to equity investments – related parties | — | 1,021 | 1,153 | 9,632 | ||||
Add: | ||||||||
Distributions from equity investments in excess of | 7,389 | 8,536 | 39,104 | 63,897 | ||||
Free cash flow | $ 282,036 | $ 200,445 | $ 964,205 | $ 1,268,463 | ||||
Cash flow information | ||||||||
Net cash provided by operating activities | $ 473,300 | $ 394,787 | $ 1,661,334 | $ 1,701,426 | ||||
Net cash used in investing activities | (1,068,707) | (207,916) | (1,607,291) | (218,237) | ||||
Net cash provided by (used in) financing activities | 378,700 | 88,670 | (67,912) | (1,398,532) | ||||
Western Midstream Partners, LP | ||||||||
Three Months Ended | Year Ended | |||||||
December 31, | September 30, | December 31, | December 31, | |||||
Throughput for natural-gas assets (MMcf/d) | ||||||||
Gathering, treating, and transportation | 516 | 457 | 435 | 409 | ||||
Processing | 4,043 | 3,699 | 3,692 | 3,474 | ||||
Equity investments (1) | 489 | 495 | 466 | 483 | ||||
Total throughput | 5,048 | 4,651 | 4,593 | 4,366 | ||||
Throughput attributable to noncontrolling interests (2) | 172 | 167 | 161 | 156 | ||||
Total throughput attributable to WES for natural-gas | 4,876 | 4,484 | 4,432 | 4,210 | ||||
Throughput for crude-oil and NGLs assets (MBbls/d) | ||||||||
Gathering, treating, and transportation | 368 | 334 | 332 | 317 | ||||
Equity investments (1) | 347 | 347 | 333 | 373 | ||||
Total throughput | 715 | 681 | 665 | 690 | ||||
Throughput attributable to noncontrolling interests (2) | 13 | 14 | 13 | 14 | ||||
Total throughput attributable to WES for crude-oil and | 702 | 667 | 652 | 676 | ||||
Throughput for produced-water assets (MBbls/d) | ||||||||
Gathering and disposal | 1,076 | 1,101 | 1,029 | 853 | ||||
Throughput attributable to noncontrolling interests (2) | 22 | 22 | 20 | 17 | ||||
Total throughput attributable to WES for produced- | 1,054 | 1,079 | 1,009 | 836 | ||||
Per-Mcf Gross margin for natural-gas assets (3) | $ 1.04 | $ 1.05 | $ 1.04 | $ 1.05 | ||||
Per-Bbl Gross margin for crude-oil and NGLs assets (3) | 1.57 | 1.40 | 1.52 | 1.38 | ||||
Per-Bbl Gross margin for produced-water assets (3) | 0.71 | 0.69 | 0.69 | 0.79 | ||||
Per-Mcf Adjusted gross margin for natural-gas assets (4) | $ 1.29 | $ 1.26 | $ 1.28 | $ 1.32 | ||||
Per-Bbl Adjusted gross margin for crude-oil and NGLs | 2.43 | 2.27 | 2.48 | 2.46 | ||||
Per-Bbl Adjusted gross margin for produced-water assets | 0.86 | 0.84 | 0.83 | 0.94 | ||||
(1) | Represents our share of average throughput for investments accounted for under the equity method of accounting. |
(2) | For all periods presented, includes (i) the |
(3) | Average for period. Calculated as Gross margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the |
(4) | Average for period. Calculated as Adjusted gross margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided |
Western Midstream Partners, LP | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
December 31, | September 30, | Inc/ (Dec) | December 31, | December 31, | Inc/ (Dec) | |||||||
Throughput for natural-gas assets (MMcf/d) | ||||||||||||
Operated | ||||||||||||
1,704 | 1,674 | 2 % | 1,635 | 1,470 | 11 % | |||||||
DJ Basin | 1,341 | 1,331 | 1 % | 1,322 | 1,331 | (1) % | ||||||
369 | 40 | NM | 120 | 33 | NM | |||||||
Other | 998 | 990 | 1 % | 930 | 914 | 2 % | ||||||
Total operated throughput for natural- | 4,412 | 4,035 | 9 % | 4,007 | 3,748 | 7 % | ||||||
Non-operated | ||||||||||||
Equity investments | 489 | 495 | (1) % | 466 | 483 | (4) % | ||||||
Other | 147 | 121 | 21 % | 120 | 135 | (11) % | ||||||
Total non-operated throughput for | 636 | 616 | 3 % | 586 | 618 | (5) % | ||||||
Total throughput for natural-gas assets | 5,048 | 4,651 | 9 % | 4,593 | 4,366 | 5 % | ||||||
Throughput for crude-oil and NGLs assets (MBbls/d) | ||||||||||||
Operated | ||||||||||||
225 | 220 | 2 % | 214 | 198 | 8 % | |||||||
DJ Basin | 81 | 68 | 19 % | 71 | 82 | (13) % | ||||||
20 | — | 100 % | 5 | — | 100 % | |||||||
Other | 42 | 46 | (9) % | 42 | 37 | 14 % | ||||||
Total operated throughput for crude- | 368 | 334 | 10 % | 332 | 317 | 5 % | ||||||
Non-operated | ||||||||||||
Equity investments | 347 | 347 | — % | 333 | 373 | (11) % | ||||||
Total non-operated throughput for crude- | 347 | 347 | — % | 333 | 373 | (11) % | ||||||
Total throughput for crude-oil and NGLs assets | 715 | 681 | 5 % | 665 | 690 | (4) % | ||||||
Throughput for produced-water assets (MBbls/d) | ||||||||||||
Operated | ||||||||||||
1,076 | 1,101 | (2) % | 1,029 | 853 | 21 % | |||||||
Total operated throughput for | 1,076 | 1,101 | (2) % | 1,029 | 853 | 21 % | ||||||
NM—Not meaningful |
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SOURCE Western Midstream Partners, LP
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